Monday, April 16, 2012


Morning Bell: Beware the Taxmageddon

April 5, 2012 at 9:03 am
Brace yourself. In a mere 271 days, you and your fellow Americans will be hit with a tax hike the likes of which this country has never seenThe Washington Post aptly called the unprecedented $494 billion tax hike “Taxmageddon,” and Federal Reserve Chairman Ben Bernanke described it as a “massive fiscal cliff.” Whatever your preferred imagery, it’s a really big deal.
Despite all the warnings, President Barack Obama has kept his silence while Congress has made no apparent effort to prevent this impending calamity to families and the economy. The prevailing wisdom is that “something will get done” in a lame duck session of Congress after the election. But why wait? And why after the election?
Here’s why you should be worried. For starters, remember that this is the same President who in 2009 promised, “if your family earns less than $250,000 a year, you will not see your taxes increased a single dime.” That’s a vow he’s broken, and in 2013, things are going to get even worse if this year Obama doesn’t lead and Congress doesn’t act. Katy, bar the door, there’s big trouble in store.
The tax man won’t draw his billions from the American taxpayer with just one big needle — the massive tax increase will be the product of tax policies expiring in seven different categories, on top of five new Obamacare tax hikes taking effect. In a new paper, Taxmageddon: Massive Tax Increase Coming in 2013, Heritage’s Curtis Dubay details the tax hikes that will occur if President Obama and Congress do not act before the end of the year:
Almost 34 percent of the tax increase from Taxmageddon comes from the expiration of the 2001 and 2003 Bush tax cuts. These cuts are best known for reducing marginal income tax rates, but they also reduced the marriage penalty, increased the Child Tax Credit and the adoption credit, and increased tax breaks for education costs and dependent care costs.
Another 25 percent of Taxmageddon comes from the expiration of the once-temporary payroll tax cut. The expiration of the patch on the Alternative Minimum Tax (AMT) — which would raise the income threshold over which families qualify for the AMT to prevent middle-income families from paying this tax that is only supposed to impact “the rich” — accounts for 24 percent of the total potential 2013 tax increase.
The balance of the tax hikes comes in part from new taxes under Obamacare, the expiration of tax cuts in the 2009 stimulus, the expiration of a group of policies known as “tax extenders,” changes in the current policy on the death tax (in 2013, it will rise from 35 percent today to 55 percent and the exemption will fall from $5 million to $3.5 million), and the expiration of businesses’ ability to fully expense new capital investments.
This $494 billion in higher taxes will certainly hit families and business hard in 2013, but their effects are already being felt. Dubay explains that Americans must plan for tomorrow, and the tremendous uncertainty about tax policy makes the future much more uncertain, thus discouraging the investments and other actions needed to spur the economy to create jobs faster today.
So while the President and Congress appear content to put off ’til the 11th hour what they can and should do today, those who will have to pay the higher tax burden are waiting to see what the future holds. Dubay says that this is “slowing job creation and stopping many of the millions of unemployed Americans from going back to work.”
Early on in his presidency, Barack Obama said he knew about the impact of taxes. Back in 2009, on a visit to Elkhart, Indiana, Obama emphatically stated his belief that raising taxes in a recession is a bad idea. Though America is not in recession today, it still struggles with very high unemployment, and so the President’s logic applies with equal force — raising taxes is a drag on job creation. Unfortunately, in a speech in Washington on Tuesday, President Obama unabashedly revealed that preventing tax hikes is not his priority. In fact, he wants to see even more taxes imposed on the American people and on job creators all in the name of “fairness” — may of which are in his budget. That’s a political doctrine, not an economic policy, and it’s a proven recipe for economic disaster.
If the President doesn’t work with Congress to take action soon to prevent a 2013 Taxmageddon, his brand of “fairness” will result in the biggest tax increase in the nation’s history. And that storm will wreak even more damage on America’s already fragile economy. Congress shouldn’t wait for Obama to take the lead in preventing a policy nightmare he might actually favor. Instead, it should act now to prevent these tax hikes from crushing America’s families and our economy.

Z;   So what do we do now?  Wait and suffer for his inactivity?   Believe the lies?  Conjure what a beautiful world redistribution will be....until the rich don't have anything left to redistribute?
P.S.  If you're interested in the GOOGLE BIG BROTHER SITUATION, make sure you read below!


Bunkerville said...

You did good!! Sums it up very well. At least in a few months we will know the answer and whether we need to head for "the bunker"!

Silverfiddle said...

I hope it happens, especially if Obama gets reelected. This the left's dream scenario. Taxes! Taxes! as far as the eye can see!

Ducky's here said...

More terror talk from the Heritage Institute trying for another shake down.

Total nonsense.

Lisa said...

"More terror talk from the Heritage Institute trying for another shake down."

Yeah Z how dare you post the facts.

So Ducky is this also teror talk? "Federal Reserve Chairman Ben Bernanke described it as a “massive fiscal cliff"

Ducky's here said...

Z said...

Bunker, it wasn't ME who 'did good'...just giving facts someone else wrote (see his name at top of piece!)
And yes...head for the BUNKER in BUNKERVILLE!

SF...not a bad wish. But, we probably wouldn't ever get things back to sanity again.

Ducky, please don't do that again. I don't have time for stupid songs. Thanks.'ll never stop.

Part of the fun of having this blog is getting facts and seeing the leftwingies obfuscate, kill the messenger, etc....:-)

Ticker said...

Gee Duck I didn't know Bernanke worked at the Heritage Foundation. I thought he as an Obama appointment to the Fed or at least a carry over.

Instead of looking for and posting stupid songs you could look up some facts before going off half cocked on your comments. But then Duck, I really don't expect any better from you. You are so covered in libcrap and intoxicated with lib kool-aide you can't even think for your self. How do you manage to even get up and go through the day Duck or do you have a "prompter" to tell you your every move.

Sam Huntington said...

If crap were music, Ducky would be an orchestra.

Z said...

Sam, or a punk funk band.

I'm getting worried at the left's inability to focus and see what's going on. I can't imagine there'll be any joy when these things hit us so hard and we'll need to say I TOLD YOU SO.
Maybe then they'll remember how they childishly had to cling to killing the messengers, scoffing, deriding, etc.

I never thought we'd go through this in our country and I never thought we could have lost so many people to leftwing university indoctrination and the media bias.

They're very clever, however, we have to give it to them.
You set up anybody you hate way ahead of time (I remember watching CNN and hearing about FOX opening soon on cable and how derisive they were and thinking "Man, what is that FOX and why's CNN so against it already?") .
You lie about people like Palin (tho I'm no fan anymore) and their children.
You make it so rich isn't good anymore.
You say that anybody who isn't for the greening of America hates clean air....
etc etc

Then people start speaking up and it's "Ya, but PALIN said that..' or "FOX had that on" or "ALL WND (which I don't respect because they are so hyperbolic) information doesn't count"
or "Glenn Beck's a nut"
or "The Heritage Foundation is always wrong"

and it's compelling. Stupid, but compelling to nonthinkers.

Lisa said...

It really is amazing Z how they have achieved to brainwash so many people.
I don't care what people say but I was watching a 3 part series on Hitler and his rise and fall to power and much of it is quite similar how people were so enamored with him plus many of his followers were from academia.
He too used the Media to spread propoganda.

Anonymous said...

Idiots with motive. Every damned one of them.

As a conservative I see liberals as stupid. As liberals, they see me as evil. Stupid you can educate, evil must be destroyed. [loose quote from CK@townhall]

Liberals are evil. Let's see it and destroy it. Our G-d is not a kind and loving G-d. Our G-d demands much more from us than the liberals would site in scripture. "Jesus died for our sins" <-- ever considered that the sin might have been NOT destroying evil when we had the chance?

I'm a student of Jesus and a follower of my creator's wishes. I don't need instruction. I have it handed to me daily. Internal peace is not to be confused with external freedom. Fathers must stand their ground so that their children can have the choice to learn and experience life.

A Gnostic learns from scripture and knows that his sword is always needed.

Always On Watch said...

People won't believe that taxmageddon exists until they are enslaved by it.

PS: LOL to Sam's comment!

Brooke said...

Waiting until the 11th hour... Both sides will dither, blame the other when nothing happens and then we will be screwed.

Meanwhile, Obama is salivating over what or who he can spend this new 'revenue' on.

Joe said...

I am SO tired of the attitude that those who work hard, take risks and earn more should be able to keep less.

Every liberal who thinks that is just plain wrong headed and can't think his way out of a wet paper sack.

Liberalmann said...
This comment has been removed by a blog administrator.
Kid said...

We'll do what we've always done when imbecile democrats get hold of the reins, raise taxes, and kill the economy.

Enough people will get slapped upside the head with the 2X4 of "Good Lord, my life sucks, let's give the other side a chance, what the hey", and some other politician will be elected and forced into lowering taxes, deregulating, and slapping the "paddles" back on the chest of the American Economy. "CLEAR! BONK!!"

Or, the "people, dead voters, and rigged voting machines" might just let this evil run its course to rock bottom. We'll find out soon enough.